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6 Major Challenges In Warehouses

With the rapid evolution of technology, the way distribution centers do business has changed drastically in the last one decade or so. Are you aware of those changes, and tackling, the biggest challenges facing warehouses today? Here are six eye-opening focus areas for improvement. An efficient Ware House Management System (WMS) can address all the emerging challenges related to a modern warehouse.

 

Inventory Management Capabilities

 

You need to have total control of your inventory, from receiving to shipping. Lacking this fundamental understanding of your DC stock can lead to too much overstock, or worse, backorders that make customers unhappy.
Using real-time cycle counting (and cycle count planning) assures inventory accuracy of up to 98 per cent or better.

 

More Demanding Customers

 

In today’s distribution centre, you must provide very specific labels for your customers, as well as kitting and assembly of orders. If you can’t comply, you may well lose their business.

 

You need a warehouse system that enables you to automatically accommodate these customers. You don’t have time to create a special label every time you ship to client ABC. Your warehouse needs a labeling system that is built in – recognising each customer’s preferences and automatically providing your workers with the correct customised labels, every time.

 

Globalisation

 

There are more competitors in your market every single day – people who sell nearly the same products you do, from anywhere in the world. Their quality might not be as good, but the products are cheap. If you can’t compete by keeping overhead down, you lose crucial business to those competitors.

 

Doing less with more is what warehouse technology is all about – automated processes and precise operations save your time and money, and put you ahead of the international competition.

 

Product Diversification

 

Take a walk around your warehouse and peek into the little-used bins. You’ll see products that you might not even be aware that you had in stock. Why? Your customer is demanding that you stock these items.

 

Balanced Growth

 

As the economy starts to improve, you might find yourself fielding more business. Increasing sales are good. But this doesn’t mean that you necessarily have the ability to start hiring right away.

 

Without the use of warehouse technology, you have little choice but to start hiring, even if your payroll isn’t ready yet. Many businesses are still in a recovery state, and new employees require training, which not everyone has time for.

 

Warehouse management systems not only keep your employee roster at a bare minimum by allowing warehouse workers to operate at peak capacity, but it also helps reduce training time when you are ready to start hiring again.

 

E-Commerce

 

We live in an electronic world. If you aren’t on the internet, or can’t take orders through the Internet, you are already falling far behind business that operates on the web. If you can accept EDI (Electronic Data Interchange) from your customers and ASNs (Advance Shipping Notes) in your warehouse, you have a distinct competitive advantage over businesses that refuse to get on board the e-commerce revolution.

 

 

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